Risks faced by Singapore firms when undertaking construction projects in India

Abstract This study identifies the risks that Singapore-based architecture, engineering and construction (AEC) firms face when working in India and investigates the risk response techniques adopted by them. Data were collected from Singaporean experts who were involved in AEC projects in India through in-depth interviews. Besides the typical risks that a domestic project faces, the main risks that international AEC firms face in India include: political and social risks; high cost of financing; fluctuating currency exchange rates; and huge cultural difference between foreigners and Indians. The risk response techniques include having adequate insurances and careful planning and management. It is recommended that foreign firms operating in India should not try to change Indians’ way of working. Instead, foreigners should respect local culture and practices, and be flexible and extremely patient.

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